India Eyes Foreign Capital for REITs, InvITs Under New Proposal
India’s markets regulator, SEBI, has proposed allowing foreign investors and qualified institutional buyers to act as strategic investors in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to boost capital inflows. Currently, strategic investors—who are allocated units before an issue opens and must invest 5–25% of the total offer size—are limited to a narrow group, excluding entities like public financial institutions, insurance funds, provident funds, and pension funds. This restrictive definition, SEBI said, prevents REITs and InvITs from attracting capital from major long-term investors. Under the new proposal, foreign investors—excluding individuals, body corporates, and family offices—would be eligible to participate. The regulator is seeking public feedback on the proposal by August 22.